IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmA : IAmAhttp://www.reddit.com/r/IAmA/IAmA stands for "I am a", and AMA means "Ask me Anything". This is the home to interviews, from the extraordinary to the mundane. We have several scheduled celeb AMAs, as well as a near-constant stream of AMAs from regular redditors, just like you!http://www.reddit.com/3hldoKUAjllXPW8i.pngIAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmA : IAmAhttp://www.reddit.com/r/IAmA/IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/Wed, 18 Apr 2012 10:10:11 -0700<!-- SC_OFF --><div class="md"><p>I buy your unpaid credit cards, personal loans, gym membership contracts, etc. Then I sit at home in my underwear and make money off of it. If you knew how much I paid, you would be outraged. My goal here is to give some advice in dealing with collection agencies, law firms, debt collectors, etc. I have been in this industry since I was 18 and self-employed buying debt since 2008. Let me know if I can help... Thanks!</p> <p>EDIT#1: I am back now and answering questions! Thanks for the interest, I am hoping some people have questions about how to respond to debt buyers/creditors/collection agencies as I am really looking to offer some inside advice on that issue. Fire away.</p> <p>EDIT#2: Thanks for the warm support guys, I hope most of you are seeing now that I am not sitting in an Ivory Tower with a steak tartar catheter high fiving my 1% buddies. I am just a young dude trying to be financial independent in the USofA. Cheers for the upvotes and great questions!</p> </div><!-- SC_ON --> submitted by <a href="http://www.reddit.com/user/giovannibernini"> giovannibernini </a> <br/> <a href="http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/">[link]</a> <a href="http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/">[153 comments]</a>http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ds8ofTortured_Sole on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ds8of2012-04-18T10:18:51.425715-07:00Why/how are you able to get people to pay the loans that you buy?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsdx0giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsdx02012-04-18T10:29:03.931675-07:00Well the most basic way to get people to pay is to just call and say &quot; Hey my name is John Doe from DebtBuy Corp and we now own your old WellsFargo loan. Were not WellsFargo so we have alot more leeway as far as your balance is concerned. Can I help you get this paid before we begin reporting it to your credit or before out attorney reviews this for a lawsuit?&quot; A small number of people will start repaying that loan based on that statement above. The ones that dont, get sued. Once we get a judgment, the gloves are off and we can do things like 1) Garnish wages, 2) Liens on property, 3) Judgment debtor examinations, 4) Bank levy I absolutely hate authorizing lawsuits because I dont like the position it puts people in but this is how I feed my family and I have no choice sometimes.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dssxjAmped52 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dssxj2012-04-18T10:57:33.200460-07:00I don't think this is deviant at all. If you weren't buying this debt, not only would most of the people, whose debt you buy, not be able to get above water, but just as well, the banking industry would be required to suffer the losses on the bad debt that they currently have. In turn, banks would need to offer higher interest rates to cover the losses, increasing the price of debt. In fact, aside from the methods of recovering payment: garnished wages, property liens, etc. I think you're actually providing a much needed service to the banking industry, and the countries economic status. I thinks its lame that just because you're in the business of getting paid what people &quot;owe&quot; you, you get a bad rap. I feel like insurance also falls under that category.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dswt4giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dswt42012-04-18T11:05:02.484587-07:00Thanks, I definitely agree with you. The only reason I can sleep soundly at night is knowing that I do my absolute best to help people out in repaying the accounts that I 'own'. I know real sharky-asshole-greedy types that make much more money then me but they are inscrupulous and would smack a grandma in the face if money would dispense upon doing so. I try to 'have a heart' I guess you could say. And you hit the nail on the head, if I dont buy it, someone else will and odds are that person is jaded, old, and doesnt care about anything but making money. I am young, naive, fairly liberal, and I make enough money to be comfortable and have fun. I dont need excess.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt489Amped52 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt4892012-04-18T11:19:32.689334-07:00Yeah. I'm sure people would rather you run non-profit. I'm surprised it's not already regulated to be so. Have you ever let anyone go, completely off the hook? Or do you always regain your initial investment?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt99ggiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt99g2012-04-18T11:29:12.073938-07:00I have let people off the hook completely. In fact I do so fairly often. If I get a call from an 80 year old grandma on SSI that has terminal cancer and I know she isnt full of it, her debt gets erased or if she proposes payments of any type, I will take them. And no I have never lost money on a deal (knock on wood), worst case scenario it takes me longer then expected to get my money back.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt9rmgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt9rm2012-04-18T11:30:07.967346-07:00I also have people that pay rediculous amounts monthly on their accounts in fact yesterday I received a payment of $2.50. I get that payment every 2 weeks from the same individual. Their balance is over $5000 and they have been paying for 2 years now at 0% interest.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9w3aStarke on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9w3a2012-04-19T13:26:05.025249-07:00So it will take them 83+ years to pay off that debt? Are you hoping that they will pay more later or just happy to get something back at all?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea6hvgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea6hv2012-04-19T13:46:37.266828-07:00Neither I or the consumer are naive enough to think they will repay that debt in full. What they are doing is owning their obligations and doing what they can to keep the account current and therefore avoiding further collection activities. I told the person if they were ever able to come up with $500 to settle the account I would write off the balance.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ho1un[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ho1un2012-04-28T10:05:16.454784-07:00&gt;their obligations and doing what they can to keep the account current and therefore avoiding further collection activities. I told the person if they were ever able to come up with $500 to settle the account I would write off the balance. I appreciate your attitude and your working with people in these circumstances, but i have a couple of question about this particular case, 1. Does the debtor know that every time he pays that 2.50 he is resetting the statute of limitations back to day 1 and the entire remaining amount is collectable for the period of time allowed based on the state he lives in and on the type of debt. 2. Does he lnow that if he sends in the 500 and you write off the rest, then the other 4500 (minus what he's paid) is considered income for tax purposes? 3. Does he know he is making his credit worse by paying a collection?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt4uf[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt4uf2012-04-18T11:20:43.899849-07:00&gt;. Can I help you get this paid before we begin reporting it to your credit or before out attorney reviews this for a lawsuit?&quot; A small number of people will start repaying that loan based on that statement above. The ones that dont, get sued. Once we get a judgment, the gloves are off and we can do things like 1) Garnish wages, 2) Liens on property, 3) Judgment debtor examinations, 4) Bank levy And you can be stopped with two terms: Statute of Limitations and Bankruptcy. And in my state you can't even garnish wages. I do appreciate that you do try to give people a break. Unfortunatly once someone aske me to help them fight off a collection agency I don't have the time or luxury to make a determination about the integrity of the collector, so I have to operate on the assumption that they are all scum.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt8d6giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt8d62012-04-18T11:27:30.290345-07:00I totally get it, and that assumption will probably do you right in most scenarios. I hate to say it but A LOT of collectors, buyers, are scum. And for the record, I do not buy or try to collect on 'time barred debt' (statute has run) or bankrupt accounts. Period. And I would never attempt to garnish anyones wages who we did not try on multiple occassions to work with. Furthermore, if someone is getting garnished 8/10 times if they call us, we will either lower or stop the garnishment and allow them to set their own repayment terms. I respect what you do and I am glad their are educated people such as yourself defending consumers from 'the bad guys' as their are plenty. Keep doing what you are doing, you are providing a service more valuable than mine.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eiv1gpistolwhipped on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eiv1g2012-04-20T05:47:13.963167-07:00True! And if social security or veterans funds are in their accounts, they can't touch a dime. Sometimes it is better to let them sue and take it to trial. Many times the debt has been bought and sold so much that witnesses are no where to be found.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eiwxm[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eiwxm2012-04-20T05:54:23.121938-07:00&gt;Sometimes it is better to let them sue and take it to trial. Many times the debt has been bought and sold so much that witnesses are no where to be found. I know several people who let them go to the trouble and expense of filing the lawsuit, answered it so they didn't get a default judgement and actually had to show up at a court date to get a judgement, then filed bankruptcy literally days later and the debt collector was left empty handed.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx91nstareatthesun442 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx91n2012-04-18T16:25:12.892493-07:00How do you get money from people in states like Texas with really good consumer protection laws (for unsecured debt anyways). You can't garnish wages in Tx.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxf2lgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxf2l2012-04-18T16:37:56.309206-07:00I outsource all my Texas accounts to a great attorney in Texas who specializing in collections. We have actually done really well in Texas as we can still lien property and levy bank accounts IF NECESSARY.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtlxyshadow776 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtlxy2012-04-18T11:53:10.784816-07:00You said you get these debts just as a line in an Excel sheet, so presumably no backup documentation? Without documentation, is it really possible to get a judgement (levy, lien, etc.)? I guess if you file a suit and the defendant doesn't respond you get a default judgement, but it seems like all one needs to do is demand proof and you would lose.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dttr9giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dttr92012-04-18T12:08:16.856243-07:00We purchase the proof of debt when we buy the accounts. It comes in different forms but normally we have the original contract, itemization of charges justifying the balance, and any personal identification (state issued ID, etc). And we dont sue on any accounts that we dont have absolute proof that the person owes it.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ds8hz[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ds8hz2012-04-18T10:18:32.423469-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsdl8barryicide on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsdl82012-04-18T10:28:23.345149-07:00They buy it wholesale. You owe $50,000 to company X. Company X has no means of getting the money out of you (they sent you a letter and charged you a late payment fee... that's all they can do). OP offers to buy that debt for $5,000. Company X takes the $5,000 because $5,000 is better than zero. OP then goes after you, because that's his job. His aim is to get the most amount of money from you (anything over $5,000 is pure profit).http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsgl9giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsgl92012-04-18T10:34:16.412886-07:00Nailed it. But the situation you described would probably go more like. Bank X has $50k in chargeoffs, my company buys it for $1000.00 and then I immediately transfer the pool of loans to an outside collections agency who represents me as the new owner. And as you stated, anything I get over $1000.00 is profit.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ejz4clskalt on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ejz4c2012-04-20T07:44:17.538044-07:00Why can't we buy our own debts this way?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ekwlkKDallas_Multipass on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ekwlk2012-04-20T08:57:13.154845-07:00This needs to be number 1.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emoiugiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emoiu2012-04-20T11:12:05.462339-07:00It is completely possible that this could occur one day but again, I dont have any delinquent debts that could be packaged and sold... I am sure since the history of this business model (early 1970s) it has occurred once or twice where a buyer has acquired his own debt somehow.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e54teChamilionaire on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e54te2012-04-19T07:23:34.993920-07:00Is that typical numbers? You'll buy debts in $50k sizes? And for $1k? And you don't even have to make the phone calls? What type of debts do you buy/who do you work with? Any type of debts more effective at collecting than others? When you decide to sue, I am guessing you hire a local attorney and the debt then becomes the account balance + cost of attorney and at that point you can garnish wages? Where if they had just worked with you, they could have gotten 70% or so off? I had a debt go into collections about 2 years ago. I had people constantly calling my phone from India, but I marked them all &quot;straight to voicemail&quot;. When I finally settled with them, it was so hard to understand them for around 30% of the original balance, it was so hard to understand them. I also demanded everything in writing. They didn't have access to email, and to fax me something took an hour and it came out all splotchy, like something that had been photocopied 10x from the original. Barely legible. What a pain in the ass.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5hudgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5hud2012-04-19T07:55:33.248753-07:00Yeah I don't outsource collections to India or the Philippines or any offshore group for a reason... And the $50k for $1000 was a hypothetical situation, I have never bought only $50k in accounts. The smallest batch I have purchased was around $1.2 million in accounts and I paid about $25k for it. Furthermore, I have found that personal loans and lines of credit have been the most effective to collect and credit cards come in second and third for us has been things like delinquent gym memberships and auto deficiency balances (which are a nightmare and I do not buy).http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4el1r9L33tminion on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4el1r92012-04-20T09:08:23.951757-07:00How does selling to you benefit the bank (relative to hiring a collection agency themselves)?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emnzngiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emnzn2012-04-20T11:10:59.500034-07:00Banks do light in-house collections, most do have agencies that they first send the accounts out to. I am typically buying debt that has actually sat at one or two collection agencies already previous to my acquisition. I like this because it makes the debt cheaper to buy and I can just instruct my agencies to tweak their strategy a little bit and breath new life into the portfolio. This has kind of been my niche and what has allowed me to be successful in this business.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elmgf[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elmgf2012-04-20T09:52:48.751426-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eml8wgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eml8w2012-04-20T11:05:18.667605-07:00The gross face value of my first purchase was about $1.2 million in receivables. I paid $25k for it. Did that make better sense?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5g7l[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5g7l2012-04-19T07:51:38.972252-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1u02chronicpenguins on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1u022012-04-18T22:31:11.270400-07:00is 50k the original loan amount, or the amount after interest has built up?(how much is the bank really losing)http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5qbfgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5qbf2012-04-19T08:15:19.272667-07:00$50k was a hypothetical situation. I normally buy pools of over $1 million face value and that is principal only. As far as how much the banks are losing? That depends on how much the borrower had already repaid before charge off and I am typically paying the bank bet 3-7% of the gross balance lately.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eild7sahba on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eild72012-04-20T05:06:08.087620-07:00But what keeps the Bank from doing exactly what you're doing? If you're making a profit (on average), the bank also would. No?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4empzpgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4empzp2012-04-20T11:15:08.412247-07:00A lot of banks do invest in hedge funds and investment managers that might in turn invest in some larger debt buying companies out there. Wherever there is money to be made, wall street and the banks arent far behind.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dscbwgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dscbw2012-04-18T10:26:00.077280-07:00SO the way this works is typically once every quarter (some lenders are doing this monthly) the big banks and small banks and lots of larger private lenders will take a large pool of accounts that are 'not-performing' ie the borrowers are not making their payments and havent been for some time now, and they clump them together in a big 'portfolio' and from there I get an email from my broker with unspecific account details. The description of the portfolio will say something like (These are Wells Fargo personal lines of credit that are delinquent 180 days + and the borrowers all own homes) it will then list how many accounts are in the portfolio and total gross facevalue. Ex. I just bought accounts from a private lender that will remain nameless, I paid about $46,000 and I bought about $856k in outstanding receivables. My company now owns the entire gross amount of the receiveables. I then transfer that pool of accounts (it is literally just an excel spreadsheet with peoples names on it and a piece of paper saying I (my company) now owns it) to a debt collection agency that makes contact with the borrowers, offers them reductions in balance (since I only paid about 5% of the facevalue of the loan) and or payment plans. The goal and the industry standard is to liquidate about 10-15% of the gross amount of the loans. I typically pay anywhere from 1.9% to 6% and we can expect that we will double and sometimes triple or quadruple our money over a 2 year period.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1uk9chronicpenguins on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1uk92012-04-18T22:32:43.858938-07:00Why dont banks just buy/invest in debt collection company? Im sure for the big banks like wells fargo, citi,bofa, chase it would just be a penny out of the bucket..http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5ip3giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5ip32012-04-19T07:57:34.266123-07:00Most banks have internal collections teams but are fairly ineffective. Collections is a highly regulated industry and the banks don't like to get their hands TOO dirty when it comes to hands on with their customers.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e3hf3[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e3hf32012-04-19T02:48:21.909983-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsf2nkiddr01 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsf2n2012-04-18T10:31:17.487105-07:00you sir, are the devil... Or at least a devilish link in a big devilly chainhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dshgpgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dshgp2012-04-18T10:35:56.559189-07:00Hahaha I am actually just a really normal dude. I never in a million years thought I would be doing this. AND in fact, if I wasnt the one who bought your debt, some other much more DEVIL-LIKE dude would buy it. When I buy this stuff, I try to let people off the hook for as little as possible. I am more like the Mother Theresa of the Debt Buying world. No?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eiteepistolwhipped on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eitee2012-04-20T05:41:00.625960-07:00Ughhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4empcvgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4empcv2012-04-20T11:13:53.911242-07:00Ellaborate?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du96kFan_of_Joker on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du96k2012-04-18T12:36:55.998420-07:00this is a great AMA, don't know why people are downvoting. How did you establish contacts with agencies? About how much money (Presumably using my own money to start so I don't have to borrow) would I need to start buying? How much do you pay the collectors for them to collect for you? Break it down for me :D. Looks like something I'd want to pursue, I've always wanted a stay at home job and make tons of money :)http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dwu9igiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dwu9i2012-04-18T15:54:08.023857-07:00As far as establishing contacts with agencies I use an online referral agency known as the Columbia Law List. It is a list of collections attorneys in different states throughout the country and its as easy as calling them up and saying 'Hey I am a debt buyer and I own some accounts in your state, can you represent me in the collection of these matters'. The answer is always yes as this is how they stay in business as well by taking accounts on a contingency basis. As far as capital required, it depends on who youre buying from and what kind of product you are buying. I have specialized in mostly subprime charge offs as they are the most inexpensive and you get more accounts for your money. BUT! They are also more difficult to collect so it is really about finding what you are comfortable purchasing. I spent $20,000 on my first buy back in 2008 and I have turned that by into a NET $140,000 since purchase. I have reinvested most all of that money over the years since clipping off only a small amount to supplement my actual income.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyp52Fan_of_Joker on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyp522012-04-18T18:17:44.323233-07:00PM me the link of the website?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4duf94Fan_of_Joker on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4duf942012-04-18T12:47:58.086106-07:00also, do you pay taxes from other people paying you their debt? (dumb question)http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6mp1giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6mp12012-04-19T09:25:31.092551-07:00Haha definitely not a dumb question, I do pay taxes only on the net profit of my business. I typically make large buys before the end of the fiscal year to negate most of my tax liability for that year. I am to the point now where I am paying quarterly estimated taxes because I am making more money and expect to have a tax liability this year.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtua9shibbybear on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtua92012-04-18T12:09:16.380514-07:00have you ever heard of anyone being able to buy their own debt either by coincidence or actually trying? would you just be able to cancel your own debt?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtvosgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtvos2012-04-18T12:11:55.423510-07:00I have actually purchased the debt of someone I knew though I did not know them well (we went to higschool together) all I did was inform the agency to handle them with kid gloves and offer the maximum discount. Now if I had purchased my girlfriends debt or the debt of a close friend or relative, I would inform them I bought it but then would close the account for some nuisance value like $1 to show it was satisfied. And as far as buying my own debt, I dont currently have any delinquent accounts that would be up for sale but I assume in theory you could but it would be a very very low possibility of finding your own debt out there. Its a huge market.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e58vrChamilionaire on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e58vr2012-04-19T07:33:57.753370-07:00buying your own debt... woah that's like dividing by 0. At this point you are playing with house money. You need to look into this.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtyedshadow776 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtyed2012-04-18T12:17:05.446439-07:00If you can't collect the debt after a period of time, do you rebundle and sell to a less discriminating debt collector?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du4x6giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du4x62012-04-18T12:29:17.492826-07:00I have never done this before but I know others that have. I will probably one day be more active in reselling but I don't think I am to that volume level yet.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt3lqoldspice75 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt3lq2012-04-18T11:18:21.304105-07:00How many hours a week do you spend working? Before you started working for yourself in this, what did you do? Were you a debt collector for an agency? If so, for how long? What qualifications did you have to get into that? How much did you borrow in 2008 to get started? For how long were you doing the collections yourself before you started the arrangement with the collections agency? Are there any laws that prevent private individuals from buying debts and doing the collections work by themselves? What are the basic legal limits of what you can do to collect debts?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt6pygiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt6py2012-04-18T11:24:21.925834-07:00I spend 40+ hours at home working. I am always looking for new deals, managing the accounts that I have placed all over the country with different agencies, attorneys. I am taking calls and responding to emails all day. It is not a getrichquick or even a getrichfast type business. It is a slow build but will pay off heavily if I keep adding portfolios over time. Before I started doing this I was a lowly bill collector at the age of 18 and went out on my own in 2008 at 23 years old. I spent those first 5 years learning everything I could about the industry. I borrowed $10,000 from a childhood friend and matched that investment with every dime of my personal savings which was about $10k at the time as well. The industry is highly regulated, check out the FDCPA, and other such legislation. And yes anyone can buy debt. Again I dont do any of the collecting, I have agencies that I work with that do the 'dirty work'.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtvzpredelman431 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtvzp2012-04-18T12:12:32.464044-07:00Why don't you buy the US government's debt?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du5avgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4du5av2012-04-18T12:29:57.299541-07:00You mean treasury bonds? I do own some but so do most Americans...http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elx4rrjdsmith on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elx4r2012-04-20T10:15:31.231640-07:00Best comment in the thread, kudos.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4edbni_jamil_ on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4edbni2012-04-19T17:59:54.702209-07:00everyone who's paid into social security...http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5dp8Chamilionaire on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5dp82012-04-19T07:45:42.383234-07:00They'll only let you sue them for a judgement if they agree to let you sue. They are essentially playing with house moneyhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebgk2ltjboy03 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebgk22012-04-19T15:22:20.416579-07:00In how many different comments are you going to say &quot;house money&quot;?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eblr5Chamilionaire on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eblr52012-04-19T15:33:50.503068-07:00At least 3, maybe more if applicable. House money.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dy4rbguitarnoir on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dy4rb2012-04-18T17:33:03.041661-07:00Have you ever said to a debtor, &quot;Gee, well, I see that the statute of limitations has run-out on your debt, and you really have no obligation to pay me a cent. But if you would be so kind as to just give me just a tiny payment, that'll re-affirm the debt, you can look forward to these calls for another seven-years, or so. 'Kay?&quot;http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8o3zNotAlana on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8o3z2012-04-19T11:57:16.200340-07:00I once bought a car for $300. I drove the hell out of it for a year. I then sold it for $100 (it broke down). After I sold it, I didn't put in a change of ownership. The car got towed. I then owed $4000. 3 years later, having it off my credit because of statute of limitations was AWESOME.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eazokgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eazok2012-04-19T14:45:38.247992-07:00That fucking sucks. I dont ever touch auto deficiency balances or really anything to do with auto finance if I can avoid it. I assume that bill was from the tow company? Fuck tow companies for the most part. I am sorry that happened to you.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyhojgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyhoj2012-04-18T18:01:15.035631-07:00I don't buy time barred debt and I don't try to collect on time barred debt so that conversation has never occurred.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kdek5[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kdek52012-05-05T04:35:03.689980-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kgmbsgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kgmbs2012-05-05T11:35:57.763915-07:00Yeah, zombie debt, time barred debt, out of statute debt, all the same stuff. I do know of buyers that purchase almost exclusively 'time barred debt' only because they are able to pick it up at such an extremely low price (were talking fractions of cents on the dollar in some instances) and then they just kind of 'guilt' people in to paying. Clearly it would be an extremely small fraction of consumers who would actually pay a debt they practically did not even owe any longer but... This is America and as PT Barnum said, 'there is a sucker born every minute' and unfortunately there will be someone around to exploit that ignorance of the law for profit. :(http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kju0g[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kju0g2012-05-05T16:59:15.545785-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kulr9giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4kulr92012-05-06T14:45:51.342279-07:00I hope so man! Was hoping for more questions similar to yours but the parent thread probably got smashed by minutiae.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4leouc[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4leouc2012-05-07T21:25:29.734504-07:00Well, if you don't mind, could I get your opinion on this particular issue I am having? I would rather pm you if you have the time.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e2lraAlvraen on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e2lra2012-04-19T00:00:13.451219-07:00You know, you'd probably never hear people say that... but I applaud you. You sound like a decent human being that's actually somewhat compassionate for their clients. :)http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5i6jgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e5i6j2012-04-19T07:56:19.362954-07:00Hey thanks! I would like to think that is true, after all I am a redditor for fucksakehttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dszoo[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dszoo2012-04-18T11:10:41.335451-07:00And I am the guy sitting at my computer at home helping people fight off people like you, only I don't get paid for doing it and most of the time its at my expense.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt39tgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dt39t2012-04-18T11:17:44.193214-07:00Really? Well I strictly follow the FDCPA and have never in my life violated it. I can say with absolute truthfulness that I am not one of the bad guys because I know a couple of the bad guys and it blows me away what their conscience can handle. Do you have an alternative solution to what I do by chance? I assume you are a consumer advocate yeah? I know you will laugh at this but I consider myself to be one as well. When I buy accounts, I make sure I work with the people that originally borrowed the money and I always treat them with respect and dignity even sometimes to my own demise. Like I have said previously, I could be making much much more money in this industry if I gave no fucks.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dta27[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dta272012-04-18T11:30:42.133063-07:00You are the rare exception to the rule and I compliment you for that.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtcmugiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dtcmu2012-04-18T11:35:32.566979-07:00I think I am the exception because when I started this, I WAS the debtor. I was over $10,000 in credit card debt (yes now this sounds like an infomercial) at the time and was being harrassed by an agency to repay one of the cards I had let go severly delinquent. The day I started debt buying was the day I decided to go from debtor to debt owner. I used the first profit I made after repaying my buddy and myself to pay down my credit card balances to $0, including the asshole agency that was harassing me. Ive been on both sides so I can empathize. And Im just a reasonable human fucking being that treats people with respect until they deserve otherwise. Ya know!?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en1m0picu on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en1m02012-04-20T11:38:37.353292-07:00You let him off that easy? Didn't ask for proof. Is the FDCPA the moral standard these days.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4enakngiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4enakn2012-04-20T11:56:29.623671-07:00Let who off easy? The agency I owed money to? Why would I ask for proof when I knew I owed the debt? My goal wasnt to make the collectors life miserable, I just didnt have the money to pay at the time. That is one thing I hate is when consumers who KNOW they have a valid debt requesting proof over and over as a stall tactic. It doesnt benefit anyone, it sits on the consumers credit and they only have to prove you owe it once. Any redundant requests after that do not have to be obliged.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eryv5picu on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eryv52012-04-20T18:58:02.047771-07:00Sorry, my comment was following TrollSockpuppet's comment, not yours.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4hnx4c[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4hnx4c2012-04-28T09:52:18.016522-07:00&gt;Let who off easy? The agency I owed money to? Why would I ask for proof when I knew I owed the debt? My goal wasnt to make the collectors life miserable, I just didnt have the money to pay at the time. That is one thing I hate is when consumers who KNOW they have a valid debt requesting proof over and over as a stall tactic. I Anyone contacted by a collection agency should ALWAYS ask for proof even if they are 110% sure they owe it. Why? Not only to make the collector do some work (which in many cases is not worth their time to do) but make sure this particular collector actually owns the debt or is authorized to collect it. &gt;It doesnt benefit anyone, it sits on the consumers credit and they only have to prove you owe it once. Any redundant requests after that do not have to be obliged. What's the collectors alternative then? If they don't prove it, they don't get paid. They can always sue, but they are going to have to prove it to the court.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsjwhFullofGoodwill on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsjwh2012-04-18T10:40:33.763720-07:00How does one get into doing this? Is it easy to start up?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsodegiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsode2012-04-18T10:49:01.156144-07:00I would say it is 'easy' to START in this business but it is getting more and more difficult to succeed. When I started, debt was exponentially cheaper to buy. WHen I was paying 1.9% originally in the midst of our 'recession' I am now pay 5.5%. But the good news is I will liquidate 10-15% over about 2 years or so. The margins are tight and you need the right connections. I formed connections because I started as a lowly bill collector when I was 18 and met lots and lots of people that do exactly what I do. With any business, its always best to stick with what you know. Its hard to suggest getting into this if you dont already have a bit of experience or knowledge of this industry.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyn3lCallate_La_Boca on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dyn3l2012-04-18T18:13:06.622276-07:00If someone fought back the lawsuits, by making you produce actual paperwork or witnesses, would you bail on the lawsuit?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6ne8giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6ne82012-04-19T09:27:00.456377-07:00Absolutely not, we verify and re verify the debts we own over and over again. We do not and have not ever sued someone to enforce a debt unless we have clear and concise proof of said debt. I have never walked into court or sent an attorney an assignment for a debt that was not very clearly owed and documented as such.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9fa3doodle77 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9fa32012-04-19T12:52:14.457828-07:00Have you ever collected on someone who you think was scamming the banking industry? I feel like you could just 1. take out a $100k loan 2. toss the money in an offshore account (or maybe just a bank account elsewhere) 3. pay a couple of months 4. stop paying 5. wait for the debt to be sold to a collector for $2-3k 6. when the debt collector calls, make up some shit and offer $10k 7. Profit. You lose credit score, gain $50k or so (more if you could get a bigger loan).http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eb1hdgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eb1hd2012-04-19T14:49:30.906610-07:00I sued a guy once who tried to take out a loan using false information. He swore up and fucking down it was not him until the day we went into court. He attempted to use a 'fake' social and a stolen ID but then faxed in the original loan docs from HIS employer. I quickly found HIS social security number (which he had just transcribed in reverse on the original application) by searching his name and employers address in our skip-tracing database. As far as 'scamming the banks' on a major level. When was the last time you tried to get a personal line of credit for $100,000?? Unless you are putting you house or first born child up as collateral and a DNA swab for proof. You will not ever see that amount of money from a bank. Shit, I own a condo in an expensive part of this country and I have six-figures of cash on hand and I dont think I could get a $100,000 line of credit from any financial institution.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4egfpyIanAndersonLOL on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4egfpy2012-04-19T22:40:26.086772-07:00Oh, I disagree about that. Amex gives $100k+/month pretty easily if you have that much cash on hand.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emqwsgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emqws2012-04-20T11:16:55.188775-07:00I have been a platinum member with American Express for 3 years and with AMEX as a company since 2006. The largest purchase they were ever willing to authorize for me was about $15k. But if you are able to get AMEX to 'lend' you $100k then congrats man, you are better at life than me!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eu0caMrRedSeedless on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eu0ca2012-04-20T22:56:17.871657-07:00This is where this gets strange to me. My parents could get a line of credit (on the house) for 50k. Is that sort of the same thing you are talking about when AMEX wouldn't authorize you for more than 15k?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eyikcgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eyikc2012-04-21T11:12:43.368111-07:00Get a line of credit on your house isnt the same as hitting up AMEX for cash. A line of credit on your house has your HOME as collateral. They take a lien on your property until their loan is repayed. That means, you dont pay on that line, we take your house. It is a collateralized debt obligation. AMEX doesn't require collateral when they lend, they lend based on their assessment of your a) ability to pay currently and b) your past ability to pay. See the difference and why one would be more likely to lend you money than the other?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4f4hu4MrRedSeedless on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4f4hu42012-04-21T21:22:46.022755-07:00Ahh, I see. When you hit up AMEX, they are trusting that you can repay the loans, with a house equity loan, if you don't pay, they collect. This makes more sense. Thanks.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4f7isgredforeva on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4f7isg2012-04-22T06:09:22.302867-07:00Centurionhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ed8zu_SilentScream on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ed8zu2012-04-19T17:53:36.738617-07:00Very interesting AMA, I hope I'm not too late with these questions: * You say you got started with an initial $20k investment, but I'm curious if someone would be able to get started with say $5k or $10k? * You say you spend 40+ hours a week working on this, but outsource the dirty work to collection agencies and lawyers if needed, so I'm curious what you are working on in those 40 hours, and if it would be a possible to get into this for someone that already has a full time job and wanted to get into this until it took off enough to possibly quit the other job? What's the bare minimum amount of time that the actual buyer could get by with and still build a supplemental income? * I have zero experience with debt collection and currently know next to nothing about the regulations involved. Can a total newcomer depend on reputable collection agencies and lawyers to follow the rules enough to keep everyone out of trouble, or is this something I should stay away from without a much better understanding of the regulations involved? * And last question (for now anyway), where does one go to buy debt? Is this where the inside connections and experience comes into play, or is it something a total newcomer can get into? And finally, thanks for the AMA. I've been looking for ideas on other ways to make money, and an AMA was one of the least expected places I thought I might find it.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ednnlgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ednnl2012-04-19T18:28:58.593499-07:00Not too late at all, thanks for the interest. 1) You could start wit $5k-$10k for sure but you would probably have to partner with someone else on a buy which is what I did a lot initially. Say the entire buy is going to cost $50k or so, if you put up $10k you might be able to find a partner(s) to go in with you and you can bring down whatever your prorata share of the buy would be. 1/5th the totally inventory in this case. 2) You can definitely do this in your 'free' time but I take a more proactive roll in my purchases because my background is in collections so I am fielding calls and emails all day from the different agencies/attorneys I have outsourced to asking me if 'hey would you take $500 on this $1200 loan' or like 'is $25/month ok to accept from this borrower as long as the first payments today', things like that. I like to stay involved but if you wanted it more of a passive deal you can just set settlement parameters with your agencies and say like ' I give you blanket authorization to settle any claims at 50% or higher without my authorization' or ' any and all payment plans are welcome'. 3) I would suggest reading and researching this before taking it on as a venture but I would suggest that to anyone. I started doing a vending business on the side when I was 18-19 and even with that I made sure to read and learn about that simple little cash business before diving in. I would always suggest learning the basics at least before starting any new venture. 4) Google 'debt buying' 'how to buy debt' 'debt broker' things like that and you may find some of the big names that are selling stuff. I have a broker that I met through my time in this business originally and I have stuck with him and one other national broker that I met through him. It is possible to do this with no connections but you will have to be able to form the connections as you go and build your network (again as with any business). The reality is that it does not take a genius to understand and do what I do. I can say this because I sir, am no genius, haha. I barely made it through highschool and couldnt stand to sit for more then 3-4 classes of college. I have never been much of a 'scholar' but somehow I developed a fire in my belly to succeed and I think some perserverance and determination is really all you need to be good at most anything. My advice is, find something you know, you can make a business out of it somehow, I guarantee it. Good luck!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eeizn_SilentScream on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eeizn2012-04-19T19:42:23.332587-07:00Thanks for the reply. Unfortunately, what I currently know isn't really the type of thing where I can take some of the money I've saved up and start making it work better for me than my retirement account. But what you're talking about sounds like something that could have better returns than a lot of other things, and would allow me to keep my current job until I was making enough on the side to quit that job and devote more time to it. I will of course do some more reading on the subject and figure out if I can really understand and get into it. Two more questions, if you don't mind answering. * As far as taxes go, do you end up getting more of a capital gains type of tax rate on those profits, or does it get taxed higher like a more traditional job? * Does a debt buyer need to form a company to get into this? Thanks again.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emrz9giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emrz92012-04-20T11:19:02.264953-07:00I get taxed at long term capital gains when I draw profit from early inventory buys and I try to make sure I only pay long term capital gains. If I see a portfolio performing too well to the point where they would be considered short term capital gains, I will go hunting for a new buy to offset the tax liability. As far as forming a company, I suggest an LLC or a C-Corp but I know of a couple people just using DBAs. It is whatever level of anonymity and shelter you felt comfortable with. I own a single-member LLC for my purposes.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsbpsneekneek on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsbps2012-04-18T10:24:53.552117-07:00How bout a job man? (yes, I'm gonna be that guy).http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsf4ygiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsf4y2012-04-18T10:31:24.547140-07:00Haha, I am sorry but I honestly dont need any help right now. I outsource all the 'dirty work' and I am just pushing numbers around all day. :( Good luck though!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfz2neekneek on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfz22012-04-18T10:33:03.193930-07:00ehehe, it's cool man, can't wait for the AmA to get more questions, seems like an interesting subject.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsimxgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsimx2012-04-18T10:38:14.628900-07:00Thanks! The only reason I am doing this is because it is an industry that MOST people have no idea even exists. I want to inform consumers of whats going on and hopefully help some people out with an insiders POV in order to handle their own situations.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsk16PoorlyTimedRedditor on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsk162012-04-18T10:40:47.171452-07:00The description makes it sound fairly straightforward. What are some difficulties of the job that prevent someone like me who has never heard about this until a minute ago from doing this? If you don't mind me asking, what's a general range of how much you earn in a year? Is it stressful?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsn6zgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsn6z2012-04-18T10:46:49.158391-07:00Well, as an example, I earned a little over $120k last year. BUT! I spent about $60k in acquiring new portfolios so with that said my NET income was more like $60k. But this year, I have netted about $50k in 4 months and I have plenty of inventory (meaning I dont need to buy anymore this year) So I expect to make anywhere from $120k to $150k this year net profit. As far as getting into the industry, it helps to have some collections experience, IE worked as a collector or in the industry for awhile to understand all aspects of the business. This is a HIGHLY REGULATED industry. But to be honest, it is one of the easiest and most simple businesses that I know of. Whats difficult about saying 'hey pay your bill please or we might sue you'. As far as breaking into the industry, you can form a corporation or llc or dba and start bidding on portfolios right away. I know of a couple people that bought debt and then just sat at their kitchen table calling people hoping some might pay (though I dont advise this strategy). And as far as stress, the first year in this industry, 2008 for me, was EXTREMELY stressful. I borrowed money from a good buddy of mine to start this thing and I spent the first 9 months on my knees begging in order to get that repayed but then, after year one, I was doing really well and had whats known as a 'forward flow' scenario where I was able to acquire new portfolios quarterly based on how much money was coming in. I am 4 years into this business so far and I still feel like I am 'building' but one day it will be producing plenty of income to live off of without my direct influence on the day to day business.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsrpfPoorlyTimedRedditor on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsrpf2012-04-18T10:55:16.289221-07:00This is awesome. It's really cool seeing someone start something that's slowly taken off (I would say 120-150K is pretty damn good!). Out of curiosity, why do banks auction these debts to you instead of directly handing them off to the collection agencies?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsv4pgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsv4p2012-04-18T11:01:48.549496-07:00Well to be honest, a lot of the 'bidders' on the accounts ARE collection agencies. I luckily have a really great relationship with an agency so I bid on these accounts as a debt buyer and then immediately transfer to the agency. I retain ownership and control but I pay a fee to the agency to collect it. I could be making 25% more money if I had an in-house collection group but I am not willing to take on that added liability and time commitment at this stage. edit: And thanks man! I think slow and steady is the most realistic approach to building any business with staying power.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx6rfjasonellis on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx6rf2012-04-18T16:20:31.004256-07:00So, if you had twice as much investment money available, could you make twice as much money in a year? I would think the answer is yes, but I don't want to assume. If it is true, and you spent $60K to make $60K... would that mean if I had $200K to buy debt, I could make $200K from it? Has anyone ever offered to buy debt (fund the purchase) and have you manage the rest, and split the profit?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxguzgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxguz2012-04-18T16:41:38.780634-07:00SO your numbers are close but this business is not an exact science. As you have realized it is a CASH HEAVY business. It literally takes money to make money in this business and sometimes you wont see your initial investment back for 9-12 months and nowadays its more like 12-18 months. I started in the middle of the recession and did really well so now I am just keeping the ship afloat by reinvesting as often as I can but not overextending myself. I draw from the business a modest salary of about $7-$8k a month, I invest about $2-$3k in legal fees every month and the rest gets socked away if their is a rest. I also still have one investor I pay interest to when I borrow his money and I keep about $60k of his on hand for purchases as they arrive.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxjjmjasonellis on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxjjm2012-04-18T16:47:12.110271-07:00What kind of interest do you pay to this investor for borrowing his money?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxm1ggiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxm1g2012-04-18T16:52:32.076353-07:00I pay 10%-12% interest over a period of 12 months. I sign a promissory note every time and have been making my one investor 10-12% year after year (sometimes on a 6 month turnaround) since the day he handed me a check 4 years ago for our first buy. Luckily he is a childhood friend of mine and works for a large (not to be named) internet company that pays incredibly well so he has always had extra cash lying around.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elb27stephen92704 on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4elb272012-04-20T09:28:06.601386-07:00Could you answer as best you can the question proposed by Mr. Ellis above, you partially answered and I was more interested in this portion... &quot; If it is true, and you spent $60K to make $60K... would that mean if I had $200K to buy debt, I could make $200K from it? Has anyone ever offered to buy debt (fund the purchase) and have you manage the rest, and split the profit? &quot; Thankshttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emn93giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emn932012-04-20T11:09:27.410761-07:00Like I said previously, it is never an exact science, all debt and all debtors are not created equally. I could buy $1 million in unpaid Ballys (now defunct) gym membership contracts and only liquidate 4% of that pool over a 3 year period. Or I could buy $1 million in unpaid WellsFargo signature loans and liquidate 15% over 3 years. There is no exact money in/money out formula. The product I have bought the most is a private lender that does kind of 'payday' style loans, short term, high interest loans with a high rate of default. I like these loans because I enjoy relieving people of high interest rates and people seem to be more receptive to paying their bills once I have reduced their interest from say 59% to 10% simple. As far as people funding my purchase, I have said a few times here I have one person that will lend me money (fund my purchases) at 10% interest. I use his cash to buy pools of debt and pay him dividends on his investment over a 12 month period. That all make sense? If not, PM me and Ill try to help you with your question more proficiently.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx9c2awkwardarmadillo on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dx9c22012-04-18T16:25:51.592143-07:00How can you see the flow to bid on it? Is there a major broker that does the majority of the business? How can you start building those connections if you come from a different industry?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxepjgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dxepj2012-04-18T16:37:08.845240-07:00There are a lot of 'large' brokers out there that you can subscribe to email offers. As with any venture, youll want to do a lot of research on the industry before hand if you are an 'outsider'. I am lucky because I made some good connections early on and was able to harvest those connections when I got my shit together finally and had a couple bucks to start investing.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1e7karcticfawx on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1e7k2012-04-18T21:49:39.237121-07:00Hmm, do you work with any veterinary offices? I know that's one place that could really use some help in getting people to pay back debts. Many of them ask for payment up front because they can't get people to come back and pay their bills after, and can't afford to pursue legal action.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6ommgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6omm2012-04-19T09:29:32.673366-07:00I have a soft spot for animals in general and I would love to help out a veterinary office. I know the first agency I worked for had a veterinary client and we did pretty well for them. If you know of a vets office that needs help with mounting receivables, please PM me and I can find an agency for them to assist in collections.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1u01comrade_z on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e1u012012-04-18T22:31:11.135458-07:00Any advice for someone unemployed with massive student debt? To be specific, they're unemployed because they're just recovering from two years of treatment for cancer.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6qrhgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6qrh2012-04-19T09:34:07.139637-07:00How dare you get cancer and not repay those student loans! JKJK My advice would be, #1 call them and explain the situation, ask if they are willing to take small payments until youre back on your feet. If they say no, then tell them to fuck off (literally, it will feel good I promise). #2 it really depends on the balance of the loans and if its a reasonable number or not (proportionate to your income or expected income). If the number is like $100k+ and you only expect to get $30k a year jobs then you will need to explore bankrupting the private loans and then making the smallest possible payments on the federal loans as they are not dischargeable in bankruptcy. The reality is asking yourself if you will need your credit for anything anytime soon, if the answer is no, then why care about your credit? Your only actual fear is if they take a judgment and being garnishing your wages. My only advice, is communicate with them, try and work it out. If they arent receptive then make it as difficult as possible for them to ever collect from you. Good luck man, you lived through cancer, at this point what the fuck else matters?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4efgm3comrade_z on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4efgm32012-04-19T21:03:08.416958-07:00This has been helpful. Thanks!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emqzjgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emqzj2012-04-20T11:17:05.384784-07:00No prob!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e49dw[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e49dw2012-04-19T05:46:26.465508-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6nnjgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e6nnj2012-04-19T09:27:33.236119-07:00Never head of it but now my curiosity is piqued. Will have to check that series out!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8riy[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8riy2012-04-19T12:04:10.812847-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e96ilgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e96il2012-04-19T12:34:51.697278-07:00Watching now as I work. Thanks for the link!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4edcn2_jamil_ on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4edcn22012-04-19T18:02:15.591243-07:00Not accurate.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4efs90[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4efs902012-04-19T21:33:00.288376-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eism7_jamil_ on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eism72012-04-20T05:37:59.783663-07:00Lots of inaccuracies, which have been pointed out time and again on many different sections of this site (I've seen these videos at least 4 times on /r/videos), I'm not really interested in rehashing them all over again.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8uuiMAcFuzion on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e8uui2012-04-19T12:10:49.290285-07:00can private sector student loans collectors garnish wages?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e95x6giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e95x62012-04-19T12:33:42.649889-07:00Yes they can. We worked with a lender called ACS for years who would actively take judgments and garnish wages from student loans taken out as far back as the early 80s. Scary shit and an industry that needs to be seriously overhauled in my opinion.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9q56elitegoodguy on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9q562012-04-19T13:14:13.120854-07:00Who reports it to their credit? Would that be the collection agencies that you outsource to? Or is that some other service that you subscribe to?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea3aogiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea3ao2012-04-19T13:40:25.520221-07:00The agencies I work with report to Experian only because they are on the West coast and Experian is the major bureau round these parts. The collection trade line is a seperate trade line from the original creditors reporting of charge off.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9s7gbeachesatnormandy on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9s7g2012-04-19T13:18:23.956946-07:00How do you feel about China buying Americas debt?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea534giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea5342012-04-19T13:43:51.535378-07:00Countries buying the debts of other countries is never too much of an issue until said country gets to the point where they may have to default on their obligations as we're seeing now with Greece and Spain, Italy, etc. The big problem I see outside of potential default is the overextension of debt as in the case now with the US where we have massively over leveraged. Luckily we are still a massively wealthy nation and half of me wants to think we will be just fine. The countries that own our debt are too dependent on our success.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9sphelitegoodguy on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e9sph2012-04-19T13:19:25.683181-07:00Whats the least amount that you've seen a group/portfolio of debt go for?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea5pmgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ea5pm2012-04-19T13:45:03.092774-07:00The least I have ever paid was 1.9% of gross face value and that was in 2008. The same portfolio now goes for 5.51% which is what unpaid yesterday when I made my 3rd buy this year.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eaelkFan_of_Joker on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eaelk2012-04-19T14:02:23.391962-07:00How much in cash was that purchase? If its not too personal?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eayf4giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eayf42012-04-19T14:43:06.253536-07:00I paid about $20,000 for about $1.1 million in receivables. I have liquidated a little over 14% of that gross amount since December of 2009.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eansx[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eansx2012-04-19T14:21:07.092634-07:00If i have a VERY old debt that out of nowhere has stared calling me again to collect (obvi I never paid it), how do I get them to leave me alone. Debt is probably 8 years old. Since then I have gotten my credit score back up to 700+. Can they begin reporting on my credit again?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eax4pgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eax4p2012-04-19T14:40:27.180650-07:00Nope. The statute of limitations for credit reporting is 7 years. Thats a NATIONAL statute and does not matter what state you are in. Call that agency that is bugging you and ask them what date the last payment on that account was made or what date it charged off. If the date they give you is 7 years or old. Literally tell them to fuck off and tell them that if they call you one more time on a time barred debt that they will be violating the FDCPA and that you will seek the maximum penalty per violation. GO get them. I hate that shit. Gives us legitimates a bad name. PM me if you need any help.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebern[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebern2012-04-19T15:18:19.937256-07:00YES! Appreciate the help! I will def let you know how this goes! Can't wait to go off on these idiots.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebgwxgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebgwx2012-04-19T15:23:05.522405-07:00I am curious how they react. I have had a few people come to me with this complaint and when they call they get some sort of a backpedal response like ' oh well we uhm were just uhm checking to see if you WANTED to pay, you know as a uhm moral obligation, ok bye'. Let me know how this plays out.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebidr[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ebidr2012-04-19T15:26:29.882621-07:00I kind of already knew that, so last time they called they tried to rope me in with some &quot;Obama enacted a new law so you can pay half and it will be all gone&quot;... told them no thank you then they asked &quot;do you ever plan on paying this&quot; and I straight up said &quot;nope, but thank you for your offer&quot; and hung up. They called again today and my secretary recognized it was them and told them I was busy. Next time I will take the call and tell them to shove it...http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ecnaqgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ecnaq2012-04-19T17:00:50.187775-07:00Yeah in more technical terms, give them a CCD (Cease and Desist) preferably in writing. But let it be known to them that they MAY NOT make one more call to your employer or cell or home phones and they MAY NOT mail you any future correspondence. You can tell them this verbally and violate them via FDCPA but it is more easily proven if you have a fax or letter you mailed them and then evidence of of them breaking the FDCPA.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fi0eqannoytdman on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fi0eq2012-04-23T00:23:00.817487-07:00How about if you ask them if they reported the unpaid debt to the IRS as income. If not, that the collection agency will completely write off the debt but report the amount to the IRS as income to the borrower. And they must of course pay taxes on the income. Unless they would like to negotiate a settlement, of course.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dscfzzimmermant on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dscfz2012-04-18T10:26:13.487449-07:00buy my debt dude!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfa3giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfa32012-04-18T10:31:40.955894-07:00I probably will one day!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e10w2[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4e10w22012-04-18T21:17:41.216053-07:00dude where's your debt?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eeffielitegoodguy on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eeffi2012-04-19T19:34:07.301184-07:00Thank you for this AMA. This is a great AMA. I was actually looking into this exact same thing for quite a while now, and as recently as 2 months ago. This thread has renewed my interest in it. You said you try to avoid auto loans. Why? when you mentioned if they don't pay you can take them to court to get garnished. Granted there's court costs etc wouldn't it be worth it?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emtlcgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emtlc2012-04-20T11:22:17.206997-07:00The only reason I dont like auto loans is because it is simply not what 'I know'. I dont like going after people for deficiency balances on vehicles they no longer possess or own. You will find it very difficult to collect as those are just about the most unwilling candidates for repayment. The only way I have ever made money on auto loans/deficieny balances is taking judgments and garnishing wages. I rarely RARELY have seen anyone come to the table wanting to repay willingly for a car they no longer own. If you know that business, I am sure you would do ok in it but I think it would take some time to build cashflow. Good luck though!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsa9c[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsa9c2012-04-18T10:21:57.987497-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfp3giovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4dsfp32012-04-18T10:32:31.805081-07:00The debt buying industry has been around for quite awhile. I just call it the 'debt buying industry'. Sorry no cooler name.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ej32l[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ej32l2012-04-20T06:16:48.573048-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4enc1cgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4enc1c2012-04-20T11:59:25.922350-07:00You did exactly what you shouldve, settled. The only thing I wouldve done different was demand that they delete the derogatory from your credit and in return you would settle for x$. What is it currently showing as on your credit? 'Settle for a lesser amount'? or PAID Collection?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eo18qcreepypaste on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4eo18q2012-04-20T12:51:09.576332-07:00I'm not sure, I settled like 2 weeks ago and haven't checked yet. Erg. Should have done my research.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en3w6[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en3w62012-04-20T11:43:14.148936-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en56g[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4en56g2012-04-20T11:45:41.696346-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fd96hNinjaViking on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fd96h2012-04-22T16:37:25.409688-07:00I know I'm plenty late to the game, but I was wondering if you've ever gotten the vibe from a debtor that he had nothing left to lose and would come and kill you if you'd persist in collecting?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fe5vqgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fe5vq2012-04-22T18:05:33.752738-07:00I have talked to plenty of people in my life with seemingly 'nothing to lose' mentalities. No one has ever tried to 'come kill me' when I have asked them to take care of their obligations.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fekggNinjaViking on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4fekgg2012-04-22T18:43:09.290085-07:00Good to hear!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g429uSighFFS on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g429u2012-04-24T13:02:01.057942-07:00Wow, I'm sad I missed this AMA until now. I hope I'm not too late. Thanks for doing this by the way. You seem like one of the good ones :-) I'm in a bit of a conundrum on my debt. I have a few that went to collections and they're derogatory on my credit report. The amount isn't much but at this point I don't see any reason to pay them. They're past my state statute of limitations in which I legally have to pay (3 yrs) and I have anywhere from 1-2 more years until they fall off my credit report. In your opinion, is it worth settling them at this point? Do you usually see people settle debt that is this old? I have had nightmare experiences in the past with debt collectors so I'm terrified to even contact them, especially since they aren't contacting me (no calls, etc). I've had collectors in the past cuss at me, threaten me while at work, call my parents' neighbor to try and find me, etc. Those reasons alone are why I just want to say fuck you, I'll wait until they fall off.http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g5atagiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g5ata2012-04-24T14:26:02.062995-07:00At this point, the only reason I would recommend you taking care of them and doing a 'pay for deletion' is if you needed credit in the near future. Like if you need to buy a car or finance a purchase of any kind in the coming 2-3 years, pay to have them deleted. With that said, remember that it will remain effecting your credit for 7 years from the date of service or the date of last payment so make sure you are calculating the 'fall off my credit date' from that statute. Good luck!http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g5esvSighFFS on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4g5esv2012-04-24T14:33:43.756764-07:00Thanks for the response. I already got a car financed (and pretty good interest) with those on there so I don't think I'll worry about them. My next big purchase will be a house and that is way down the road. I may pay off the really small ones but, again, due to the way I was treated by them I just can't bring myself to do it. And thanks for the reminder on the 7 years. The calculated fall off dates are correct and are actually provided on my credit reports after a bit of searching. Most of them that I have are calculated based on the charge off date but close enough so I can't complain too much since I don't have proof of the last time I paid (yay moving in a hurry) unless I really go digging but there seems to be discrepancy on some companies as to if this fall off 7 years from charge-off date, last paid or when you became &quot;delinquent.&quot;http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4nh95pHermitCrabTuesday on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4nh95p2012-05-13T05:25:49.536450-07:00Where do you go to buy your debt? How can you be sure of what kind of debt you are buying?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4owi0melf_dreams on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4owi0m2012-05-16T15:48:13.978091-07:00Hey, I know I'm late in this, but when you go through the debts have you ever just gone, &quot;I'm not going to even try to collect this&quot;?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4x6bj1[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4x6bj12012-06-06T14:27:20.061516-07:00[deleted]http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ejgll[deleted] on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4ejgll2012-04-20T06:56:53.227157-07:00Does it hurt? You know, when Satan shoves his red, horned fist up your asshole and tears out your immortal soul?http://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emoymgiovannibernini on IAmA 26 year old self-employed debt buyer. I buy the bills you cant pay. If you knew how my industry worked, you would be outraged. AmAhttp://www.reddit.com/r/IAmA/comments/sg9y4/iama_26_year_old_selfemployed_debt_buyer_i_buy/c4emoym2012-04-20T11:13:02.755910-07:00When I am able to take 2 or 3 months off a year and spend time with my family on a beach in Thailand the Satanic penetration doesn't seem so bad in hindsight.